Europe Small Scale LNG Market to Grow by 11.8% to Reach USD 6.58 bln
The demand for Europe small scale LNG market is projected to grow from 1.9 billion Euros in 2020 to 5.8 billion (USD 6.58 bln)Euros by 2030, while actuating at an estimated CAGR of 11.8% from 2020 to 2030.
Europe is likely to experience faster growth as compared to other regions in the global market owing to the mandate set by European Union on sulphur emmsions. For instance, the sulphur emmsions cap for marine fuel is set as 0.5% by the year 2020, said a report by Energias Market Research.
Favorable prices of LNG along with growing demand from key sectors such as transportation and power generation, is projected to augment market demand over the forecast period. Also, various government regulations in light of environmental benefits of LNG have fostered the market growth in the region.
Small scale LNG includes the direct use of LNG in its liquid form. Conventional modes of regasification and subsequent introduction of LNG into the gas transmission grid for lesser production capacities have now become a part of small scale LNG.
The report said that these small-scale liquefaction plants posses a production capacity of less than 500,000 tonnes per year (tpy), and vessels with a LNG storage capacity less than 30,000 cubic meters. Small-scale LNG plants are re-deployable and primarily designed for small gas field. Small scale LNG meets the growing demand from the shipping and trucking industries for fuels that are environment friendly as compared to oil and diesel.
The marine fuel segment is likely to propel at the fastest CAGR of 12.48% over the forecast period. A rise in bunkering operations has been observed for small-scale ships, which suggests that the marine use of LNG is also becoming popular.
Moreover, the regional fleet of LNG fueled ships in operations are increasing, such as supply & service vessels, and passenger ships among others. LNG offers superior performance, while meeting the environmental requirements as compared to other fuels. Considering these factors, the demand for LNG as a maritime fuel across the region is expected to grow significantly.
